AI-use disclosure
If you use AI tools in research or advice, SEBI makes you responsible for the output and for the data you feed in, and you have to tell clients how far the use goes. We write the disclosure and put it where clients will see it.
Research Analysts and Investment Advisers.
To see when this and your other duties fall due, use the free compliance calendar.
- An Investment Adviser using AI tools is solely responsible for the security, confidentiality and integrity of client data and for advice based on AI output (regulation 15(14)).
- The Investment Adviser must disclose the extent of AI use to the client (regulation 18(9)).
- A Research Analyst carries the same duties under regulations 24(7) and 19(vii).
- Existing clients had to be covered by 30 April 2025.
- Ask what AI tools you use and for which tasks, then write the disclosure to match.
- Place the disclosure on your website and in the client agreement.
- Write the internal rule for what client data can go into an AI tool.
- Revise it when your tool use changes.
- The AI tools you use and what each one is used for.
- Whether client data is entered into any of them.
- Your current website and agreement text.
Included in the ₹15,000 compliant website
The AI-use statement is one of the pages we build on the website. For a client agreement already signed, the revision is quoted on a call.
We use an AI tool only for drafting. Do we still disclose?
The disclosure covers the extent of your AI use. If you use none, there is nothing to disclose. If you use it for any part of research or advice, the disclosure says which part.
Who is responsible for AI output?
You are. SEBI places sole responsibility on the adviser or analyst for data security, confidentiality, integrity and for any advice built on AI output.
Where does the disclosure go?
On the website in plain words, and in the client agreement. We place both.
Want this taken off your list?
Tell us your registration type and financial year end. We will tell you what we would handle and what we need from you.
Sources: SEBI (Research Analysts) Regulations, 2014, as last amended on 6 August 2025; SEBI Master Circular for Research Analysts, 6 February 2026; SEBI Master Circular for Investment Advisers, 6 February 2026; SEBI circular 2025/003 of 8 January 2025 (Guidelines for Investment Advisers).